By Olivia Oran
Oct 4 Shares of Berry Plastics Group Inc
fell almost 5 percent in their stock market debut on
The shares opened at $15.25 on the New York Stock Exchange
after the Evansville, Indiana-based company priced its initial
public offering at $16 per share, the low end of the expected
range of $16 to $18. Berry Plastics sold 29.4 million shares
Wednesday night, raising $470.4 million.
Berry Plastics, backed by private equity firm Apollo Global
Management, is one of a handful of companies Apollo has
been trying to take public this year. Apollo's real estate
services firm, Realogy, is set to price its $1 billion
IPO next week.
Berry Plastics, whose products include bottles, food
containers and plastic cutlery, had debt of $4.58 billion as of
June 30, giving it a net debt to earnings before interest, tax,
depreciation and amortization (EBITDA) leverage ratio of roughly
5.8, which is significantly higher than its peers.
Others companies that have priced IPOs this week, including
theft and fraud protection services provider LifeLock Inc
and materials technology company Luxfer Holdings Plc
, also priced below expectations.
The Berry Plastics IPO was led by Bank of America Merrill
Lynch, Citigroup, Barclays and Deutsche Bank.